Top Stories
Company Update | Singapore Airlines (SIA SP/HOLD/S$7.60/Target: S$6.76)
SIA’s Jun 26 operating data was broadly in line, but elevated fuel costs and continued Air India losses are likely to leave 1QFY27 earnings around breakeven. Despite uncertainties from the renewed US-Iran crossfire, we remain hopeful for a rebound in SIA’s profitability in 2QFY27, driven by effective cost pass-throughs and SIA’s advantageous fuel hedging position against regional peers. We raise FY27 earnings by 22% as we moderate our loss estimate for Air India. Maintain HOLD. Target price: S$6.76.
Market Spotlight
- US stocks were higher on Wednesday, with all indexes rising as the communication services, consumer discretionary and financials sectors gained with more advancers than decliners on the NYSE.
- The FSSTI rose 64.11 points to 5,559.72, supported by strength in Seatrium and DBS, with both mid- and small-cap indices rising with a broad market advance on a S$2.14b turnover.
Technical Analysis
AEM Holdings | AEM SP
Trading buy range: S$9.78-9.79
UMS Holdings | UMSH SP
Trading buy range: S$2.64-2.65
Top Stories
Company Update | Singapore Airlines (SIA SP/HOLD/S$7.60/Target: S$6.76)
SIA’s Jun 26 operating data was broadly in line, but elevated fuel costs and continued Air India losses are likely to leave 1QFY27 earnings around breakeven. Despite uncertainties from the renewed US-Iran crossfire, we remain hopeful for a rebound in SIA’s profitability in 2QFY27, driven by effective cost pass-throughs and SIA’s advantageous fuel hedging position against regional peers. We raise FY27 earnings by 22% as we moderate our loss estimate for Air India. Maintain HOLD. Target price: S$6.76.
Market Spotlight
- US stocks were higher on Wednesday, with all indexes rising as the communication services, consumer discretionary and financials sectors gained with more advancers than decliners on the NYSE.
- The FSSTI rose 64.11 points to 5,559.72, supported by strength in Seatrium and DBS, with both mid- and small-cap indices rising with a broad market advance on a S$2.14b turnover.
Technical Analysis
AEM Holdings | AEM SP
Trading buy range: S$9.78-9.79
UMS Holdings | UMSH SP
Trading buy range: S$2.64-2.65
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
